#United States #Irvine #ATTOM #refinancing #mortgage data

U.S. Mortgage Origination Trends in Q3 2025

In a recently released report by ATTOM, a leading provider of real estate data and analytics, the mortgage origination landscape in the United States for the third quarter of 2025 has been detailed, showing both optimism and challenges. Overall, 1.77 million mortgages secured by residential properties were issued during this period, showcasing a slight 1.6% decline compared to Q2 2025 but a promising 1.9% increase from the same period last year.

Key Figures and Insights

The total dollar volume of mortgage originations for Q3 2025 reached an impressive $600.4 billion. While this represents a 3.1% decline from the previous quarter, it is consistent with a 3.1% increase relative to one year ago. The contrasting trends of purchase and refinance loans provide insight into the evolving nature of consumer confidence and market conditions.

According to Rob Barber, CEO of ATTOM, “Mortgage activity eased back a touch from the spring pickup, but it's still running slightly ahead of last year.” This indicates a market that, while showing signs of caution, has not swung dramatically in either direction, instead echoing a feeling of stagnation or ‘treading water.’

Quarterly Performance Analysis

The report highlights that 1,773,487 mortgage loans were originated in Q3 2025. This figure is a drop from the 1,802,065 loans issued in Q2 but demonstrates a yearly improvement. Specifically, 765,667 purchase loans were created during this quarter — a decline of 4.8% from the previous quarter and 6.6% year-over-year. The dollar volume associated with these purchase loans stands at $309.6 billion, down 5.2% quarter-over-quarter.

Interestingly, purchase loans now account for 43.2% of all originations, which is down from 44.6% in Q2. The primary markets experiencing the most significant declines in purchase lending, such as Austin, TX, and Atlanta, GA, indicate challenges with affordability and purchasing power for potential homeowners.

Conversely, refinance loans posted slight growth in Q3, totaling 688,502, which marks a 0.2% increase from Q2. The dollar volume for refinancing reached $229.7 billion, albeit down 1.2% from the previous quarter. This uptick suggests that some homeowners are capitalizing on minor interest rate reductions and accessing equity in their homes, hence stabilizing their financial standing.

HELOC and Targeted Government Assistance

Home Equity Lines of Credit (HELOCs) are also on the rise, showing a welcomed growth trend. In Q3 2025, HELOC lending rose to 319,318 loans, an increase of 2.8% from the previous quarter. This reflects a growing consumer tendency to utilize available equity in the face of uncertainty regarding home purchasing. Moreover, HELOCs now represent 18% of all mortgage originations, indicating that more Americans are leveraging their home’s value as an asset.

Additionally, government-backed loans such as FHA and VA slowly saw a decline in origination volume. Though they remain critical for first-time buyers and veterans navigating a tight housing market, these figures reflect ongoing affordability struggles.

Conclusion: A Stabilizing Market?

As the housing finance market approaches the final quarter of 2025, it seems to illustrate cautious stability. The modest growth within refinance and HELOC sectors is encouraging, while the cooling of purchase activity signifies possible hurdles on the horizon. Home values and interest rates are continuing to be significant factors in shaping buyer sentiment. While the mortgage market is steadied, it remains crucial for stakeholders to remain agile and informed as we head towards the New Year.